Cryptocurrency is increasingly integrated into everyday investing, with many young investors now viewing it as an essential component of a well-constructed portfolio. This evolving landscape is changing client expectations of their financial advisors. Those who adapt proactively can foster stronger client relationships and attract new business, while those who overlook this trend risk losing clients. Research from a Zerohash study indicates that one in three young investors has already disengaged with an advisor who did not offer a pathway into digital assets.
In Brief
- •Among high-earning investors aged 18 to 40, 26% reallocated between $500,000 and $1 million, and 34% moved between $250,000 and $500,000 away from advisors who did not offer crypto services.
- •Most crypto investors prefer to manage their assets independently, with only 24% entrusting them to an advisor.
- •Confidence in cryptocurrency is growing, with 82% of respondents feeling more reassured by the involvement of major financial institutions.
Advisors Losing Young Clients Over Crypto
The survey, commissioned by research firm Centiment and conducted by Zerohash, reveals a significant reallocation of digital assets among investors aged 18 to 40. The findings indicate that 26% of respondents moved between $500,000 and $1 million away from advisors who avoided cryptocurrency, while an additional 34% shifted between $250,000 and $500,000 for the same reason.
These asset movements are representative of the 500 U.S. participants surveyed, all of whom earn over $100,000 annually, with some nearing $1 million in income. Notably, 75% of these participants already rely on a professional for guidance in their investment planning.
The manner in which these investors are reallocating their assets reflects a broader transformation in wealth management. Younger investors are prioritizing digital assets within their portfolios, even as many advisors have been slow to adapt. The survey highlights this trend, detailing key patterns in how investors manage their crypto ownership directly:
- •76% of crypto investors choose to hold their assets independently, with only 24% keeping them with an advisor.
- •Meanwhile, 43% dedicate 5%–10% of their portfolios to digital assets, indicating steady engagement.
- •An additional 27% are allocating 11%–20%, and 11% are placing more than 20% into crypto, reflecting a stronger commitment.
Institutional Moves Strengthen Crypto Confidence
A primary factor contributing to this increasing confidence is the active participation of major financial players. Zerohash's research shows that 82% of surveyed investors feel more secure about their cryptocurrency holdings due to the market entry of large institutions such as BlackRock, Fidelity, Robinhood, and Morgan Stanley. Their involvement is widely perceived as a signal of the industry's maturation.
The survey suggests this sentiment is influencing future investment decisions. Zerohash reports that 84% of younger investors intend to increase their exposure to cryptocurrency within the next year. Among this group, 46% plan to significantly expand their allocations.
Portfolio allocations are already reflecting this shift, with approximately 71% of investors now dedicating 5% to 20% of their total holdings to digital assets, positioning cryptocurrency alongside traditional investments like stocks, bonds, and real estate.
Desire for More Than Bitcoin and Ethereum
While Bitcoin and Ethereum continue to dominate the cryptocurrency market, investors between the ages of 18 and 40 are increasingly looking beyond these two leading assets. The survey results indicate that 92% believe access to a wider array of digital assets is important, and one in five already shows a strong preference for alternatives such as Solana, Dogecoin, and USD Coin (USDC).
However, this enthusiasm does not diminish investor awareness of the inherent challenges. The rapid growth of the crypto space has also created opportunities for illicit activities. The survey highlights that nearly 70% of respondents remain concerned about threats such as money laundering and cybersecurity breaches. These concerns underscore that, despite the excitement, caution remains a significant aspect of younger investors' decision-making processes.
The survey identifies several factors that enhance investor security. Regulated custody reassures 54% of respondents, independent audits bolster confidence for 56%, and transparent reporting is crucial for 54%. These safeguards assist investors in evaluating the credibility of advisors and platforms.
Zerohash observes that robust compliance measures continue to be a critical consideration for younger investors when assessing the professionals who manage their wealth. In essence, the quality of an advisor's cryptocurrency-related safeguards now influences their credibility as much as their investment performance.